BluSky Carbon Announces Closing of Convertible Debenture Financing and Unit Offering

Rhea-AI Summary

BluSky Carbon has successfully closed a non-brokered private placement of convertible debentures, raising $750,000 through the issuance of Convertible Debenture Units priced at $1,000 each. Each unit includes a $1,000 principal amount Convertible Debenture and 4,761.9 common share purchase warrants, with each warrant enabling the acquisition of one common share at $0.30 for two years. The debentures mature in 18 months with a 12.0% annual interest rate and are convertible into common shares at $0.21 per share.

The company also completed a non-brokered private placement offering of units, issuing 1,110,000 units at $0.20 per unit for gross proceeds of $222,000. Each unit consists of one common share and one common share purchase warrant, exercisable at $0.30 for 24 months. The securities are subject to a hold period of four months and one day.

The net proceeds from these offerings will be used for the ongoing development of BluSky's business model and general working capital purposes. The securities have not been registered under U.S. securities laws and cannot be offered or sold in the United States without proper registration or exemption.

Positive

• Raised $750,000 through convertible debentures.
• Raised $222,000 through unit offerings.
• Convertible debentures bear a 12.0% annual interest rate.

Negative

• Convertible debentures mature in 18 months, requiring timely repayment or conversion.
• Securities are subject to a hold period of four months and one day, limiting immediate liquidity.

OLD SAYBROOK, CT AND VANCOUVER, BC / ACCESS Newswire / February 24, 2025 / BluSky Carbon Inc. (CSE:BSKY) ("BluSky" or the "Company"), an innovative entry into the carbon removal clean technology sector, is pleased to announce that it has closed the previously-announced (see news releases dated February 11, 2025 and February 14, 2025) non-brokered private placement of convertible debentures of the Company (the "ConvertibleDebentures", and each a "ConvertibleDebenture Unit"), at a price of $1,000 per Convertible Debenture Unit, for gross proceeds of $750,000 (the "Offering"). Each Convertible Debenture Unit consists of (i) a $1,000 principal amount Convertible Debenture and (ii) 4,761.9 common share purchase warrants of the Company (the "Warrants"), with each whole Warrant entitling the holder to acquire one common share of the Company (a "Common Share") at a price of $0.30 for a period of 2 years following the closing of the Offering (the "Closing Date"). The Convertible Debentures will mature 18 months from the Closing Date and will bear interest at a rate of 12.0% per annum. Each Convertible Debenture will be convertible, in whole or in part, at any time while any principal or interest remains outstanding, into Common Shares, at the option of the holder, at a price of $0.21 per Common Share. The Convertible Debenture Units and underlying securities are subject to a hold period of four months and one day pursuant to applicable securities laws.

The Company also announces that it has completed its previously-announced (see news release dated February 11, 2025) non-brokered private placement offering (the "Unit Offering" together with the Offering, the "Offerings") units (the "Units"), issuing 1,110,000 Units, at a price of $0.20 per Unit, for gross proceeds of $222,000. Each Unit is comprised of one Common Share and one Common Share purchase warrant (the "Unit Offering Warrants"), with each Unit Offering Warrant exercisable for one Common Share at a price of $0.30 for a period of 24 months. The Units and underlying securities are subject to a hold period of four months and one day pursuant to applicable securities laws.

The net proceeds received by the Company from the Offerings are intended to be used for the ongoing development of the Company's business model and for general working capital purposes.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

ON BEHALF OF THE COMPANY

William ("Will") Hessert
Chief Executive Officer

BluSky Carbon Inc.
35 Research Parkway,
Old Saybrook, CT, 06475
Tel. (860) 577-2080
Web, https://bluskycarbon.com/
Email. info@bluskycarbon.com

The CSE and Information Service Provider have not reviewed and do not accept responsibility for the accuracy or adequacy of this release.

Forward-Looking Statements Caution. This news release contains forward-looking statements relating to the intended use of proceeds from the Offerings, the conversion of the Convertible Debentures, the intended use of proceeds from the Offerings, and the Company's business and plans generally, and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the failure to satisfy the conditions of relevant securities regulatory authorities and exchange(s) and other risks detailed from time to time in the filings made by the Company with securities regulators. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable law.

SOURCE: BluSky Carbon Inc.

View the original press release on ACCESS Newswire

FAQ

What does BluSky Carbon's $750,000 convertible debenture financing mean for shareholders?

It provides additional capital for business development and general working capital, potentially improving the company's financial stability.

What are the terms of BluSky Carbon's convertible debentures?

The debentures mature in 18 months, bear a 12.0% annual interest rate, and are convertible into common shares at $0.21 per share.

How many common share purchase warrants were issued in BluSky Carbon's convertible debenture offering?

Each Convertible Debenture Unit includes 4,761.9 common share purchase warrants, exercisable at $0.30 per share for two years.

What is the significance of BluSky Carbon's $222,000 unit offering?

The unit offering provides additional capital for the company's ongoing development and general working capital purposes.

What are the terms of the common share purchase warrants in BluSky Carbon's unit offering?

Each warrant is exercisable for one common share at $0.30 for a period of 24 months.

How will BluSky Carbon use the proceeds from the recent financing?

The proceeds will be used for the ongoing development of the company's business model and for general working capital purposes.

What is the hold period for BluSky Carbon's securities?

The securities are subject to a hold period of four months and one day.